FIRM GIANCHAND WALAITI RAM AND ORS. Vs. KISHAN CHAND

JUDGEMENT

(1.) ON 13 -6 -1948, Lala Kishan Chand son of Lala Nika Mal instituted the suit Out of which these proceedings have arisen for the recovery of Rs. 10,500 from Gian Chand Walaiti Ram and others on the basis of transactions which according to the terms of the contracts are to be considered as wholly made and completely to be fulfilled at Okara, subject to the customs of the Okara market and the rules and bye -laws of the Krishan Murari Exchange Ltd., Okara.

(2.) ON 27 -7 -1918, Walaiti Shah and Gian Chand basing themselves on Clause 12 of the agreement applied under Section 84, Arbitration Act, 1910, hereinafter referred to as the Act, for the stay of the suit. Plaintiffs, however, maintained at the trial that the agreement for reference of the dispute to arbitration had become wholly incapable of performance for the reason that Krishan Murari Exchange Ltd., Okara, has ceased to function at Okara. The trial Court finding that the arbitration Clause has become impossible of performance has dismissed the Defendants application under Section 34 of the Act.

(3.) FOR a proper decision of the point involved in these proceedings, I think it desirable to set out conditions Nos. 1, 6, 12 and 14 of the agreement on which reliance has been placed. Conditions Nos. 1, 6, 12 and 14 read as under: